April 27, 2012--PINEVILLE --Pineville Mayor Sherwin Rader
signed a Memorandum of Understanding with Wasioto Hotel and Resort, LLC
to build a $14.3 million four star resort hotel within the city limits
of Pineville.

"It's a historical moment, and I'm really excited about it,"
said Rader. "This has been a long time coming. I have been working on
this project for over three years, and it's been a long process."

The hotel will consist of 102 rooms, a 350 seat conference
center, 100 seat restaurant and many other amenities. It will also
include a bar and a pool.

The building of the hotel will create 167 construction jobs
consisting of local workers, and more than 80 permanent full and
part-time positions.

"This is going to provide growth for our community," said
Rader. The hotel will be constructed, acquired and operated by Wasioto.

This hotel can help bring people to the area to stay for
longer periods of time. Rader explained that when people stay at the
hotel, they will also be out in the community spending money.

The memorandum also involves the Kentucky's Department of
Forestry. The project includes the financing, relocation and
construction of a new forestry building. This was necessary and
required for the completion of the project. The city is going to swap
property in Turkey Creek for the property that the current forestry
building is on.

After this is done, the city will own the property that the
hotel will be built on and the state will own the property in Turkey
Creek. Wasioto will then acquire the property for the hotel from the
city.

The financing of this project will be provided by the issuance
of approximately $13 million in taxable revenue bonds and the issuance,
by the City of Pineville, of approximately $1.3 million in taxable
general obligation bonds.

If approved by the Bell County Tourism Commission, the city
will use the restaurant tax to pay off the bonds.

If the Tourism Commission signs off on the memorandum, then
the process of selling the bonds will begin immediately. After they are
sold, construction on the hotel will begin. It is projected that it
will take 18-24 months for the hotel to be built.

The hotel will bring in an ad volerm tax, occupational tax,
additional food tax, and a hotel tax that the city will benefit from.

There are only two factors that can prevent the hotel project
from moving forward. The first is the signing off of the agreement with
the Tourism Commission. If the city does not receive the full amount of
the restaurant tax, the project will not be completed.

"I'm sure that the Tourism Commission will have a meeting
shortly, and they will be willing to go along with this project," said
Rader. By law, Tourism is in charge of the restaurant tax.

The second is the selling of the revenue bonds. If the bonds
do not sell, then the project will be dead.